EUR/USD Reaches Its Lowest Level Since November 1

Forex News

The euro is trading lower versus US dollar today. The EUR/USD pair lost another 0.24% to trade at 1.1336 level, which is the lowest since November 1. The single currency is also pressured by budget dispute between EU and Italy. Since Italy is the third largest economy in the Eurozone, the financial markets and the euro could react negatively if Rome and Brussels cannot resolve the crisis.

The weakness of the euro was also caused by the greenback strengthening. The US dollar rose against major currencies after the US Federal Reserve kept interest rates unchanged in the range of 2-2.25% and reiterated its position on tightening monetary policy.

So far this year, the Fed raised its key rate for three times, and the market expects another increase in December thanks to a stable US economy, rising inflation and stable job growth. US GDP growth has averaged 3.3% for the first three quarters in 2018 and markets projected growth for the final three-month to be around 3%.